1. Chapter 1 IS in the Life of Business Professionals Chapter 1

2. This Could Happen to You Dee needs a Blog or an information system? –Lack of IS knowledge will hurt project progress –Uncertainty will cause project delays –Ignorance about technology leaves Dee at a disadvantage in dealing with IT staff –Never thought she would need to manage construction of an information system 1-2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

3. Pharmaceutical industry is very competitive Emerson Pharmaceuticals –450 salespersons present drugs and information to doctors –Dozens of new drugs are introduced every year Dee Clark is the Hospital Sales Marketing Director –Her job is to ensure that all reps have information to succeed How can Dee distribute information quickly? –Facts about new drugs –Seminars –Presentations Part 1-3 Marketing Director’s Dilemma Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

4. An online journal that publishes information over the Internet. Information systems can be used to disseminate information quickly and easily to salespeople. Types of information commonly shared: –Product news –Competitive threats and responses –Recent successes Part 1-4 Blogs or Weblog Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

5. Study Questions Q1: What is an information system? Q2: What is MIS? Q3: How does IS differ from IT? Q4: How do successful business professionals use IS? Q5: What new opportunities for IS are developing today? Q6: What is your role in IS security? Q7: What is this class about? How could the knowledge in this chapter help Dee and you? 1-5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

6. Q1: What Is an Information System (IS)? IS: A group of components that interact to produce information So, what is information? –Information is created when facts/data are put into meaningful and useful context 1-6 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

7. 1-7 Information Value Chain (Gartner Group) Data Information Knowledge Age Address X lives in Z Customers buy A when buying B Decision Promote Product A with Product B

8. Q1: What Is an Information System? (cont’d) Five fundamental components of computer-based information systems: 1.Computer hardware 2.Software 3.Data 4.Procedures 5.People 1-8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

9. Five-Component Framework of an Information System 1-9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

10. MIS = Management Information Systems MIS is the development and use of information systems that help businesses achieve goals and objectives Key elements of MIS: –Development and use of Information systems –to support Business goals and objectives Q2: What is MIS? 1-10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

11. Business professionals need to: 1.Take an active role in IS to ensure that systems meet their needs 2.Understand how IT systems are constructed 3.Consider users’ needs during development 4.Learn how to employ IT systems 5.Take into account ancillary IT functions Security Backup Development and Use of Information Systems 1-11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

12. Achieving Business Goals MIS aids in achieving businesses’ objectives –Businesses don’t do anything –People Do! Information systems exist to –assist business people –achieve business goals and objectives 1-12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

13. Q3: How Does IT Differ from IS? Information technology includes: 1.Hardware 2.Software 3.Data components Information technology refers to: 1.Methods 2.Inventions 3.Standards 4.Products IT could be thought of as “Information Tools.” 1-13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

14. Information Systems = Information Technology plus People and Procedures Q3: How Does IT Differ from IS? (cont’d) 1-14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

15. Does IT create a competitive advantage? Innovative applications of emerging technologies create competitive advantage - Information Systems Q4: How Do Successful Business Professionals Use IS? 1-15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

16. Q5: What New Opportunities for IS Are Developing Today? Data storage and transmission are virtually free, which provides abundant opportunities Examples: –Getty Images sells electronic pictures over the Internet. Variable cost of production is zero Revenue goes straight to bottom line –Media Partners produces automated online training and testing systems. Variable cost of producing program essentially zero Entirely automated so all revenue goes straight to bottom line –YouTube 20 months, nothing but an idea into $1.65 billion. 1-16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

17. Moore’s Law “The number of transistors per square inch on an integrated chip doubles every 18 months.” –The speed of a computer chip increases in proportion to the density of the transistors (i.e., density doubles, speed doubles) –Price/performance ratio of computers has fallen dramatically 1-17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

18. Moore’s Law (cont’d) 1-18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

19. Q6: What Is Your Role in IS Security? Security is an information systems (HW – SW – Data – Procedures – PEOPLE) Passwords are a necessary evil –Protect passwords from others (critical) –Practice proper etiquette Never write down your password Do not share it Never ask others for their password 1-19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

20. Creating a Strong Password Rules for strong password: 1.Use seven or more characters 2.Do not use your real name or company name 3.Do not use complete dictionary word 4.Use a different password from previous passwords used 5.Use upper- and lowercase letters, numbers and special symbols Example: i2LuvMIS(:>) 1-20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

21. Q7: What Is This Class About? Using IS for Competitive Strategy Looking for innovative applications of technology Combining five IS components to support a business Recognizing technology will continue to develop Considering how technology can be used to accomplish goals 1-21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

22. Dee and You –Work will be guided by five components of an information system –Someone else will set up and administer system’s blog –Need ongoing training –Need procedures for accessing and using systems –Need to look for technology for other applications –Need to use strong passwords How Does The Knowledge in This Chapter Help Dee and You? 1-22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

23. Why are you in this course? In college? How can you make this class relevant to you? Challenge yourself to find something that is important to you personally in every chapter. Guide: Duller Than Dirt 1-23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

24. Active Review Q1:What is an information system? Q2:What is MIS? Q3:How does IS differ from IT? Q4:How do successful business professionals use IS? Q5:What new opportunities for IS are developing today? Q6:What is your role in IS security? Q7:What is this class about? 1-24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

25. Chapter 1 IS in the Life of Business Professionals Chapter 1